Navin Fluorine International - Company Update - ICICI Direct
Posted On: 2020-12-17 21:57:44 (Time Zone: Arizona, USA)
Navin Fluorine has outlined capital expenditure for setting up a multi-purpose plant (MPP) with an outlay of Rs. 195 crore. The capex will be undertaken by its wholly owned subsidiary, Navin Fluorine Advanced Sciences Ltd at Dahej, Gujarat. The new capacity is expected to come on stream during H1FY23 and will create opportunities for new products in life science and crop science sectors in the specialty chemicals business. The company has already identified potential 12 new products of which five are going to be commercialised initially, which find application in crop protection. This new capacity would retain a mix of 50:50 among life science and crop protection in the long run. The management expects better margins for this new venture with an asset turn of 1.35-1.45x.
Benchmark indices extended gains and hit record high levels in early afternoon trade. At 12:20 IST, the barometer index, the S&P BSE Sensex, rose 198.75 points or 0.43% at 46,865.21. The Nifty 50 index advanced 57.95 points or 0.42% at 13,740.65.
The S&P BSE Sensex hit a record high of 46,873.71 while the Nifty hit a record high of 13,742.40 in early afternoon trade. Investors reacted positively to comments from the U.S. Federal Reserve that it will continue to support the economy. Federal Reserve Chairman Jerome Powell also said on Wednesday that stock prices are not necessarily highly priced given how low interest rates are. Meanwhile, negotiators in Washington are shaping a new $900 billion coronavirus stimulus bill that is said to include a second stimulus check.
Key benchmark indices are trading firm in early trade on buying demand in index pivotals. At 9:27 IST, the barometer index, the S&P BSE Sensex, was up 41.91 points or 0.09% at 46,708.37. The Nifty 50 index was up 9.10 points or 0.07% at 13,691.80. The Sensex scaled record high above 46,750 mark in early trade. The Nifty also hit record high above 13,700 mark.
The S&P BSE Mid-Cap index was up 0.26%. The S&P BSE Small-Cap index was up 0.41%.
The market breadth, indicating the overall health of the market, is strong. On the BSE, 1340 shares rose and 750 shares fell. A total of 106 shares were unchanged.
Stocks in news:
Navin Fluorine jumped 4.8% to Rs 2,618.50 after the chemicals maker announced that its board has approved capital expenditure for setting up of a multi-purpose plant (MPP) with an outlay of Rs 195 crore.
The capex will be undertaken by it s wholly owned subsidiary, Navin Fluorine Advanced Science (NFASL) at Dahej, Gujarat and will be funded through a mix of internal accruals and debt. The company said its new capacity is expected to come on stream during H1 of FY23 and will create opportunities for new products in life science and crop science sectors in the specialty chemicals business.
Commenting on the development, Radhesh Welling, MD of Navin Fluorine International said, This investment will lay foundation for the next phase of growth of our Specialty Chemical business. It will help us enhance our product offerings and strengthen our customer relationships along with providing building blocks for future growth.
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